Twitter Sued By Former Employee Over Failing To Cover Cost Of Legal Arbitration: Report

Twitter allegedly refused to participate in the arbitration process, leaving around 2,000 former employees with no resolution.

Twitter, now known as X Corp, is facing a lawsuit from a former employee who alleges that the company failed to cover the expected costs of legal arbitration, according to a recent report by Bloomberg. The ex-employee filed the lawsuit on July 3 in the Northern District of California. The lawsuit claims that Twitter Inc., under the ownership of Elon Musk, has been unwilling to engage in arbitration with former employees who were terminated when Musk took over the company. These employees were encouraged to use the arbitration process to address issues such as unpaid wages, unfulfilled severance agreements, and instances of discrimination.

However, Twitter allegedly refused to participate in the arbitration process, leaving around 2,000 former employees with no resolution.

The Bloomberg report highlights that Twitter, now X Corp, has been accused of violating multiple labour and workplace regulations by failing to compensate the thousands of workers laid off in 2022 after Musk's acquisition. Despite the company's demand for arbitration, Twitter has allegedly failed to fulfil its obligations in resolving these claims.

Shannon Liss-Riordan, a lawyer representing the former Twitter employees, has been actively filing arbitrations on their behalf. Liss-Riordan continues to receive calls from current employees who are filing similar claims, arguing that the company has also failed to pay out last year's bonuses.

In November 2022, Elon Musk took control of Twitter through a $44 billion acquisition. Subsequently, he initiated a series of layoffs, resulting in nearly half of Twitter's workforce, approximately 7,500 employees, being terminated. The downsizing continued into 2023, and the current employee count stands at less than 2,000.

Recently, Elon Musk announced changes to Twitter's usage policies. Non-verified users will now be limited to 600 tweets per day, while verified account holders can read up to 6,000 posts daily. Newly-unverified users will have their limit set at just 300 tweets per day. Twitter CEO Linda Yaccarino stated that this temporary limit aims to combat spam accounts and strengthen the platform. She emphasized the significance of this revamp in aligning with Twitter's mission and ensuring a meaningful user experience.